Oregon's Chapter 7 Bankruptcy Laws
If you owe medical bills, credit cards or other debts and have no way of repaying what you owe, Chapter 7 bankruptcy can give you a fresh start financially. In a Chapter 7 case, your liability for certain debts is eliminated completely. If you're a resident of Oregon who's considering Chapter 7, it's important to understand the state guidelines for filing.
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Income Guidelines
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To qualify for Chapter 7 in Oregon, your income must be within certain guidelines as determined by the means test. The means test compares your income for the previous six months against median income levels by family size. If your income is greater than the allowed limit, you are ineligible to file Chapter 7. For cases filed after November 2010, the median income for a single debtor in Oregon is $43,986. The limit increases to $71,593 for a family of four. If your income exceeds the allowed limit and you have sufficient disposable income each month to make some payment to your debts, the alternative is to file Chapter 13 instead.
Filing Requirements
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All Chapter 7 petitions must be filed with the district court. You may file in the Eugene office or the Portland office, depending on where you live. Within six months prior to filing, you must complete credit counseling with a court-approved agency. You cannot file without fulfilling this requirement, unless you can prove that you are filing under emergency circumstances. When you file, you must pay the appropriate filing fee. As of 2010, the Chapter 7 fee was $299. You must also file all supporting documentation, including a list of your creditors, a list of your debts and assets, a statement of financial affairs, your prior year's tax return, monthly income statements and a list of your property exemptions.
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Property Exemptions
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When you file Chapter 7, you agree to surrender some or all of your assets to the court. The bankruptcy trustee who is responsible for overseeing your case will liquidate these assets and distribute them to your creditors in lieu of full payment. The state of Oregon does allow you to claim certain exemptions for property. As of 2010, available property exemptions included up to $30,000 in real property; a motor vehicle up to $2,150; clothing and jewelry up to $1,800; household items and furniture up to $3,000; books, pictures and musical instruments up to $600; bank deposits up to $7,500 and tools of the trade up to $3,000.
Discharge
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Within 45 days of filing your petition, you must complete a second course in financial management. You cannot obtain a Chapter 7 discharge without meeting this requirement. Within approximately 90 days of filing, you must attend a meeting of creditors. At this meeting, the bankruptcy trustee will ask you questions about your income, debts and assets to determine whether your case can proceed. If no new issues are raised, he will recommend your case for discharge. At this time, he may also collect any nonexempt assets you may have. You can expect to receive your discharge within six months of the meeting of creditors. Once your case is discharged, it can remain on your credit for up to 10 years.
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